Pacific Business News

July 15, 2005

Getting an edge in nonprofit business plan competition

by Sally Little

Entering a nonprofit business plan competition is a great learning experience and an opportunity to hone your business skills. Depending on the business plan competition, winners may receive up to $100,000.

Participating in a competition opens the door for new opportunities and engages new partners, said Gary Maunakea-Forth, Director of Ma`o Youth Organic Farms. He was first-place winner in the 2004 Hogan/Bank of Hawaii Nonprofit Business Plan competition at Chaminade University and second-place winner in the National Business Plan Competition for Nonprofit Organizations.

It also helps refine your business model and develops new strategies for success. In addition, the financial awards are a source of unrestricted revenue.

The experience of participating in the 2005 University of Hawaii Business Plan competition helped her team coalesce and develop a business model poised for growth, according to Susie Kuhn, a participant on the Hoku International team that won the social enterprise category.

With a statement of intent due by Sept. 15 for the 2005 Hogan/Bank of Hawaii Nonprofit Business Plan Competition looming, I asked Maunakea-Forth, his staff and Kuhn, for tips for those entering a business plan competition. As a judge for the UH Business Plan competition, I also added a few of my own tips. These should be helpful for aspiring entrants.

* Pay attention to the competitions’ eligibility requirements. For example, the UH Business Plan competition requires that each team include a student from the University of Hawaii system. The business plan competition at Chaminade is open to any nonprofit--student participation is not required. The UH Business Plan Competition applies social enterprise broadly to include both nonprofit and for-profit corporations. The Chaminade competition limits participation to nonprofits.

* Attend help sessions. Kuhn said the help sessions provided by the UH College of Business Administration were extremely useful. Not only did the sessions provide valuable information on writing a business plan, they also kept their team focused on completing the plan.

* Seek the assistance of coaches, consultants and those outside of the competition. Both the UH and the National Business Plan Competition for Nonprofit Organizations offer free coaching and consulting to those who pass the first round of competition.

* Develop a feasible business model. The judges will rate your business plan on its potential for success. Although passion for your project and the social good it promises to achieve are key ingredients, the judges will select a winning business plan that is feasible and based on sound business principles.

* State your financial return on investment. Creating earned income must be a significant component of your business plan. During the start-up phase of a social enterprise some nonprofits augment earned income with fundraising and grants. If your business plan requires these funding sources in addition to earned income, you must prove the viability of these efforts. The judges will require financial statements that prove the sustainability of your venture.

* Articulate your social return on investment. While some plans involve broad, expansive social outcomes, those that are small and clearly defined are easier to achieve and measure.

* Polish your executive summary. Your executive summary is an important stand-alone document that must persuade the judges on the feasibility of your venture. Maunakea-Forth found the assistance of the consultant provided by the National Business Plan Competition for Nonprofit Organizations valuable in writing the executive summary. He learned that an ex ecutive summary was more than just cutting and pasting from the narrative of the business plan. Remember that some judges only read the executive summaries.

* Practice your presentation. Manny Miles and Kanoe Burgess of Ma’o Youth Organic Farms presented their business plan at the National Competition and encourage others to practice, practice, practice. You must present the salient points of your business plan within a strict time limit. Kuhn suggested participants practice in the presenting room or a similar location.

* Allow ample time to research and write your business plan. It may take up to three months from start to finish including market research and analysis to complete your business plan. Participants commonly say that writing the business plan took far more time than they expected.

For more information on the University of Hawaii Business Plan Competition go to www.cba.hawaii.edu/bpc/. Information about the National Business Plan Competition for Nonprofit Organizations may be found at http://ventures.yale.edu/aboutcompetition.asp. To receive an entry packet for the upcoming 2005 Hogan/Bank of Hawaii Nonprofit Business Plan Competition at Chaminade University email Director, John Webster at jwebster@chaminade.edu or contact Kilikina Mahi at kina@3pointconsulting.com.

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